The States With the Most and Least Expensive Auto Insurance

It's no secret that where you live has an impact on your auto insurance premium. Costs can vary greatly from state to state, with the national average being $1325 per year. According to 2016 statistics from Insure.com, the three most expensive states are Michigan, Montana, and New Jersey. Maine, Wisconsin, and Ohio are on the bottom of the list.

The Least Expensive States

Maine: Maine's average yearly premium is a surprisingly low $807. It's a largely rural state with a low population density, so drivers don't encounter much traffic. Additionally, the percentage of uninsured drivers on the road is one of the lowest in the nation, which helps everyone save money.

Ohio: Although Ohio is home to several heavily populated urban areas, it ranks second lowest on the list, with an average yearly premium of $899. The reason for this is fairly simple: there are more insurance companies operating in Ohio than in any other state. Since there's more competition between insurers, they offer drivers lower rates in order to gain customers.

Wisconsin: Wisconsin has a fairly low population density, and yearly insurance premiums are $912. Residents of Wisconsin are also less likely to sue each other if they get into accidents, so there's less of a risk for auto insurance providers.

The Most Expensive States

Michigan: Michigan has a no-fault auto insurance system that is unique in the nation, and this a big part of why they have an average yearly premium of $2738. The state requires drivers to buy unlimited, lifetime medical coverage as part of their auto insurance package. Some drivers choose to go without insurance because of the cost, which causes prices to rise even higher.

Montana: Average premiums in Montana are $2297 per year. This is partially due to the state having one of the highest auto accident fatality rates in the country. In addition, drivers travel further distances than in other states, so they're on the road for longer.

New Jersey: New Jersey ranks third on the list, with an average yearly premium of $1905. The Garden State has one of the highest population densities in the nation, which means more cars are on the road, and accidents are more likely to occur.